Reply to each discussion in 75 words or more.
The Uniform Commercial Code “UCC” was created to protect parties from misinterpretation and deceit. The purpose of the UCC is to enforce contracts which are defined as a promise in which the law gives remedy or performance of the law recognizes as a duty (Rohwer et al. 2017). The UCC is crucial to both private and government entities in order to facilitate business transactions. Also, it reinforces faith among consumers and business owners that what is promised to them will be guaranteed. If enforcement of contract law does not occur then people will lose faith in the capitalistic system and the market economy could rapidly decline.
The first benefit of the UCC we see day to day in our modern society is the sale of goods. This facilitates the vast majority of the economic stimulation and stability day today. It’s crucial that both businesses and buyers have faith that the products they are buying are dependable and if something bad happens it can be reconciled. For example, UCC 2-102 has stipulated certain laws to protect groups ie. Consumers and farmers (Rohwer et al. 2017). If certain parties are not protected within the constraints of the UCC then people will lose faith, and the economy will suffer as a result.
The second benefit is the duty of good faith. Under Article 2 the standard is set much higher for merchants. The commercial for fair dealing in the trade is under much more scrutiny in the UCC (Rohwer et al. 2017). Merchants need to be held to a higher standard because that is what their business model depends upon day to day. Without transparency and enforcement of contractual law, businesses and consumers will have no reason to trust one another and honor the promises they made.
UCC works to standardize many aspects of a business in both the public and private sectors of businesses. Commercial construction for example has many laws that can differ from state to state and sometimes cities to cities. Because of these differences and the limited knowledge that most new construction business owners have. UCC has stepped in to set certain laws in place to help regulate the commercial construction industry. The benefit here is that the UCC gives an even playing field for all commercial construction business owners across the United States. Small business an entrepreneurs specifically benefit from the UCC in a way that allows small business owners to thrive among larger corporations.
UCC Article 2 discusses sale of Goods. A good is defined as any movable property that is specifically identified at the time of sale. Under the UCC the goods are also known as a the transfer of title from seller to buyer for a certain predetermined price. This article of the UCC is certainly important to the everyday merchant. The UCC helps protect buyers from any unfair sale that may occur during a transaction. A great example of this would be car buying. Many buyers flood car lots everyday lookin for a good but fair deal. Car salesmen are sometimes not so fair with the sale of a vehicle. This is where the UCC steps in. The UCC will protect the buyer by placing rules that every car dealership must abide buy. These rules are spelled out in a contract that the buyer signs at the point of sale.